3 Tech Stocks Under $10 Triggering Breakout Trades

 DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Ixia

Ixia (XXIA) provides converged IP network validation and network visibility solutions in the U.S. and internationally. This stock closed up 4.1% to $9.40 a share in Thursday's trading session.

Thursday's Range: $8.92-$9.44
52-Week Range: $8.77-$16.47
Thursday's Volume: 905,000
Three-Month Average Volume: 455,662

From a technical perspective, XXIA bounced sharply higher here right above its new 52-week low of $8.77 with above-average volume. This stock has been downtrending badly for the last six months, with shares falling sharply from its high of $13.22 to its new 52-week low of $8.77. During that downtrend, shares of XXIA have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of XXIA are now starting to bounce off that $8.77 low with strong upside volume, and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if XXIA manages to take out some near-term overhead resistance levels at $9.77 to $9.96 and then above its 50-day moving average at $10.01 with high volume.

Traders should now look for long-biased trades in XXIA as long as it's trending above Thursday's intraday low of $8.92 or above its 52-week low of $8.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 455,662 shares. If that breakout develops soon, then XXIA will set up to re-test or possibly take out its next major overhead resistance levels at $10.50 to $11, or even $11.50.

Pixelworks

Pixelworks (PXLW) designs, develops, and markets video and pixel processing semiconductors, software, and custom ASIC solutions for digital video applications. This stock closed up 4.4% to $6.98 in Thursday's trading session.

Thursday's Range: $6.58-$7.09
52-Week Range: $3.66-$9.83
Thursday's Volume: 1.08 million
Three-Month Average Volume: 1.21 million

From a technical perspective, PXLW ripped higher here right above some near-term support at $6.50 with decent upside volume flows. This sharp spike to the upside on Thursday pushed shares of PXLW right into some resistance at its 50-day moving average of $7.11. Shares of PXLW are now starting to trend within range of triggering a major breakout trade. That trade will hit if PXLW manages to clear its 50-day at $7.11 and then once it takes out some more near-term overhead resistance at $7.54 with high volume.

Traders should now look for long-biased trades in PXLW as long as it's trending above some near-term support at $6.50 or above its 200-day at $6.08 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.21 million shares. If that breakout begins soon, then PXLW will set up to re-test or possibly take out its next major overhead resistance levels at $8.40 to $9, or even its 52-week high at $9.83.

Himax Technologies

Himax Technologies (HIMX) , a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. This stock closed up 2.3% to $8.91 in Thursday's trading session.

Thursday's Range: $8.56-$8.92
52-Week Range: $5.70-$16.15
Thursday's Volume: 5.64 million
Three-Month Average Volume: 4.77 million

From a technical perspective, HIMX jumped higher here right above some near-term support at $8.26 with above-average volume. This move to the upside on Thursday also pushed shares of HIMX into breakout territory, since the stock took out some near-term overhead resistance at $8.89. Shares of HIMX are now quickly moving within range of triggering another big breakout trade. That trade will hit if HIMX manages to take out some more near-term overhead resistance at $9.27 to its 200-day moving average of $9.69 with high volume.

Traders should now look for long-biased trades in HIMX as long as it's trending above Thursday's intraday low of $8.56 or above more near-term support at $8.26 and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.77 million shares. If that breakout triggers soon, then HIMX will set up to re-test or possibly take out its next major overhead resistance levels at $11 to $11.69, or even $12.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

 

 

 

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

More from Investing

Why HP Enterprise's Stock Plunged After It Beat Earnings

Why HP Enterprise's Stock Plunged After It Beat Earnings

Has Wall Street Completely Lost Its Mind on General Electric?

Has Wall Street Completely Lost Its Mind on General Electric?

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Did Trump Just Torpedo the Stock Market Again?

Did Trump Just Torpedo the Stock Market Again?

Venture Capital Funding Surges 49% as Tech Innovation Piques Investor Interest

Venture Capital Funding Surges 49% as Tech Innovation Piques Investor Interest